Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Judges Rule On Nortel Networks Bankruptcy Case
Author: Joel R. Glucksman
Date: June 17, 2015
Key Contacts
Back
Judges in the U.S. and Canada recently ruled on the bankruptcy proceedings of Nortel Networks, providing some clarity in a saga that has lasted since 2009 when the telecommunications giant filed for protection from creditors.
In that time, several courts have considered the fate of Nortel Networks assets, causing fees of more than $1 billion to pile up, according to Reuters.
The latest trial – which involved judges from both the U.S. Bankruptcy Court in Wilmington, Delaware and the Ontario Superior Court of Justice – resulted in a ruling that will see regional businesses receive pro rata portions of the $7.3 billion that came from the liquidation of Nortel Networks, the media outlet reported.
In separate opinions, U.S. Bankruptcy Judge Kevin Gross and Canadian Justice Frank Newbould wrote that every regional business would receive a share of the $7.3 billion on the basis of its creditors’ claims relative to total claims across the world, according to the news source.
The judges opted for this ruling instead of approving any of the distribution schemes provided by the three competing Nortel groups that were representing creditors, Bloomberg reported. When the joint trial began in 2014, U.K. administrators for Nortel’s European units, the Canadian parent company and its U.S. unit all proposed different plans. However, the judges rejected all three proposals. In addition, they voiced their discontent because creditor groups could not agree to an allocation plan.
“The court can only speculate why the parties, all represented by the ablest of lawyers and sparing no expense, were unable to reach a settlement,” Judge Gross wrote in the opinion, according to the news source. He went on to say that the regional businesses “have lost sight of the irrationality of their respective positions.” Finally, he stated that the different parties involved left “virtually no middle ground.”
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- Practices: Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.